US Federal Reserve chief Jerome Powell has said he plans to stay at the central bank as a governor after his term as chair ends, as the independent institution faces legal challenges under the Trump administration.
"After my term as chair ends on May 15, I will continue to serve as a governor for a period of time to be determined," Powell told his last press conference at the helm of the Fed on Wednesday.
He added that he plans to "keep a low profile as a governor" and will leave when he deems it "appropriate to do so" — an unusual though not unprecedented move.
He can remain as a governor until 2028.
Powell stressed that his decision had nothing to do with verbal criticism by elected officials, but instead was linked to his worry over legal attacks on the institution.
Since returning to power last year, President Donald Trump has frequently slammed Powell for not cutting interest rates more quickly, a policy that would boost economic activity but could fuel inflation.
Trump lashed out at Powell after the central bank head said he would stay on as a governor.
"Jerome 'Too Late' Powell wants to stay at the Fed because he can't get a job anywhere else — Nobody wants him," Trump said on his Truth Social network.
The Justice Department, meanwhile, opened a criminal probe into Powell and the Fed over renovation cost overruns, a move the central banker called a tactic to erode the Fed's independence.
The Justice Department has dropped that investigation into Powell for now, and the Fed chief said he was encouraged by recent developments.
He added that he is monitoring the next steps in this process, reiterating that he would not leave the Fed until the probe is "well and truly over."
Powell also emphasised the need for a central bank that operates "free of political influence."
On Wednesday, the Fed chairman congratulated his expected successor, Kevin Warsh, for clearing a key hurdle in a rocky confirmation process.
Unusually divided
Powell's remarks came shortly after an unusually divided Fed kept interest rates unchanged for a third straight meeting on high uncertainty from the Middle East war.
"Inflation is elevated, in part reflecting the recent increase in global energy prices," the central bank said in a statement.
Its decision keeps rates at a range between 3.50 percent and 3.75 percent.
But four out of 12 voting officials opposed the outcome, including governor Stephen Miran, who sought a quarter-point cut.
Three Fed presidents — Beth Hammack, Neel Kashkari and Lorie Logan — backed the pause but not the Fed statement signalling an inclination toward interest rate cuts.
This was the largest number of dissenting votes since 1992, and the divergence among officials will be closely watched with the central bank set to enter a new era.
Powell told Wednesday's press briefing that he expects Warsh to have the skills to forge a consensus among the Fed's voting members.
